2003 (2) TMI 78 - HC - Central Excise

Summary

Issues:
1. Failure of Respondents to file affidavit in reply
2. Challenge to show cause notices dated 14th September, 1989 and 26/28th September, 1989
3. Adjudication of the show cause notices
4. Decision on the quashing and setting aside of the show cause notices
5. Final ruling on the matter

Issue 1: Failure of Respondents to file affidavit in reply
The Respondents did not file any affidavit in reply to the petition despite multiple opportunities granted by the court. The Counsel for Respondents sought time to file an affidavit, but even on the final hearing date, no affidavit was submitted. This lack of response from the Respondents was noted by the court.

Issue 2: Challenge to show cause notices dated 14th September, 1989 and 26/28th September, 1989
The Petitioners challenged two show cause notices dated 14th September, 1989 and 26/28th September, 1989. The first notice was previously challenged by other executives in a separate case, resulting in a judgment quashing the notice against the Petitioner in this case. The court held that the issues raised in the first notice were already covered by the previous judgment, leading to the quashing of the notice against the Petitioner.

Issue 3: Adjudication of the show cause notices
The Respondents argued that the show cause notices should be adjudicated before any decision is made. However, the court decided that due to subsequent events and the notices becoming infructuous, there was no need for further adjudication. The court chose to dispose of the matter on its merits instead of remanding it back for adjudication.

Issue 4: Decision on the quashing and setting aside of the show cause notices
Regarding the second show cause notice, the court noted that it had been adjudicated against the company, resulting in a penalty that was later reduced on appeal. Since there was no evidence of personal involvement of the Petitioner, the court quashed and set aside the second show cause notice against the Petitioner.

Issue 5: Final ruling on the matter
In conclusion, both show cause notices were quashed and set aside against the Petitioner, and the court made the Rule absolute in favor of the Petitioner as per the prayer clause of the petition. No costs were awarded, and the parties were directed to act on a true copy of the court's order.